?
Real rate of return, risk and expected inflation are primary determinants of
Answer & Solution
Correct Answer:
Option
A
Real rate of return, risk and expected inflation are primary determinants of minimum rate of return. The required rate of return is the minimum return an investor expects to achieve by investing in a project. An investor typically sets the required rate of return by adding a risk premium to the interest percentage that could be gained by investing excess funds in a risk-free investment.
Join the Discussion
Login to post a comment or share your explanation.
Login